Responses
An individual applies for a mortgage through a mortgage bank.
An individual applies for a mortgage through a mortgage bank.
A company sells its stocks to investors.
A company sells its stocks to investors.
A small business opens a line of credit from a commercial bank.
A small business opens a line of credit from a commercial bank.
An individual deposits funds into a savings account at his credit union.
1 answer
The correct response that exemplifies direct finance is:
A company sells its stocks to investors.
In direct finance, borrowers obtain funds directly from the financial markets without an intermediary, such as a bank. Selling stocks directly to investors fits this definition.
